Intralot, the Greek gaming firm that formerly operated the mobile sports betting app in Washington, DC, may encounter an inquiry in the city over its handling of the application. 

DC Attorney General Brian Schwalb has sought documents from Intralot regarding its over four-year operation of the contentious GambetDC app. This might suggest that an investigation is already underway, but according to a directive from the DC Superior Court, filings related to the case are presently sealed. 

There was abundant criticism of the Intralot agreement because the contract bidding process lacked competitiveness, causing certain DC City Council members to claim cronyism similar to the 2009 decision to grant the company the lottery contract for the city. 

According to Alex Koma of the Washington City Paper, it isn’t entirely evident what Schwalb is investigating about Intralot, but DC city code grants the attorney general the authority to investigate breaches of “false claims laws.” The report indicated that the AG might impose financial fines on the gaming company and potentially prevent it from operating in the city in the future. 

Intralot Currently Operating Behind the Scenes in DC Sports Wagering 

In a move that clearly suggested GambetDC failed to meet revenue goals, Intralot outsourced its responsibilities for the only sports betting app in the city to Flutter Entertainment's FanDuel in March. 

The action quickly yielded results for the city. In its initial 30 days of operation in the US capital, FanDuel’s mobile platform and website produced a handle of $30 million and $5 million in gross gaming revenue (GGR) — amounts reflecting 673% and 887% increases compared to the previous year, respectively. Recently, DC’s mobile sports betting market has welcomed additional competitors. 

As per its agreement with the DC Office of Lottery and Gaming (OLG), Intralot could delegate its duties, yet it continues to maintain the contract with the city. The outcome of Schwalb's investigation remains uncertain regarding the company's potential removal from the city, but it's conceivable that OLG might just establish a new agreement with FanDuel. 

It is evident that Intralot is having difficulty fulfilling its financial obligations to the city. According to the Washington City Paper, the DC Department of Small and Local Business Development requires that companies from outside the area allocate significant portions of their substantial contracts to small local firms, and Intralot has faced challenges in achieving this goal. 

Intralot had previously stated that a portion of the issue was that Veterans Services Corporation — one of its key subcontractors — was not delivering services as anticipated. 

The Future of DC Sports Betting 

Sports betting in Washington, DC is now more interesting than ever, fueled by FanDuel and enhanced by recent additions like BetMGM, Caesars Sportsbook, and DraftKings. GambetDC is now a thing of the past, much to the satisfaction of bettors unhappy with cumbersome technology and unfavorable odds, as well as politicians let down by the app's revenue shortcomings. 

None of this suggests that Intralot is exempt from scrutiny or that an investigation into the company’s possible errors in the city will be conducted leniently. 

Instead, Schwalb’s investigation might aim to emphasize ongoing problems with the way Washington, DC, grants lucrative contracts — a process that has faced criticism for years and is often accused of backroom deals and favoritism.